USD/CAD holds onto weekly gains, keeps looking at 1.2800

The USD/CAD rose earlier on Friday to 1.2796, the highest intraday level since January 6. It then pulled back to the 20-hour SMA at 1.2745, and it is  |  28/01/2022 15:47
  • US dollar remains firm across the board, holds onto weekly gains.
  • USD/CAD heads for the highest daily close in a month.

The USD/CAD rose earlier on Friday to 1.2796, the highest intraday level since January 6. It then pulled back to the 20-hour SMA at 1.2745, and it is moving again toward the recent top. The key driver continues to the dollar’s rally.

The greenback remains supported by risk aversion and Fed’s tightening expectations. Higher crude oil prices supported the loonie only modestly.

From the level it had a week ago, USD/CAD is up more than 200 pips, having the best performance since August of last year.

After central banks, Jobs data

Despite falling against the US dollar, the loonie is about to post the highest weekly close in more than a year versus AUD and NZD on a risk aversion environment. The Bank of Canada did not hike rates this week, but offered signs that a tightening cycle will begin in March.

The focus across financial markets will likely continue around Wall Street and the US dollar. Regarding data, the key report in the US will be the Non-farm payroll report. After Wednesday’s FOMC meeting, prices are still adapting to the changes in monetary policy expectations.

“Next week, the focus will be on January jobs data in Canada, a chance to measure the impact of Omicron restrictions in the country. Signs of resilience and more wage growth pressure could fuel speculation around a 50bp March hike and support CAD. We expect USD/CAD to stabilise around current levels with more USD strength that should mostly be channelled through weaker low-yielders”, explained analysts at ING.

Technical levels

 

Share

Popular News

Show More Popular News

Market Insight's Views

Market Insight analyses will provide both fundamental and technical comprehensions on FX
and other asset classes for Market Insight viewers

RISK WARNING

The information provided herein is for general informational and educational purposes only. It is not intended and should not be construed to constitute advice.

If such information is acted upon by you then this should be solely at your discretion and GKFX will not be held accountable in any way.

  • ForexF
  • IndicesI
  • CommoditiesC
        Back

        Login to Market Insight Account

        Your Market Insight account gives you access to the tools that we offer our customers including our
        Technical Studies & Sentiment for your accounts.

        Forgot Password?

        Don't you have a Market Insight account? With a few easy steps you can easily register to Market Insight

        Create a Market Insight's Account

        Your Market Insight account gives you access to the tools that we offer our customers including our Technical Studies & Sentiment for your accounts.

        register_ty

        Thank you!

        Welcome to Market Insight family!

        You have succesfully completed the registration.
        We will send you an e-mail to give you some
        instructions and our Terms and Conditions!
        Our account representatives will be contacting you as
        soon as possible. If you have any further questions
        please do not hesitate to mail us via info@marketinsight.com